Professional Documents
Culture Documents
History of banking in Pakistan stands with partition. At the time of independence there were
487 offices of schedules banks in territories now consisting Pakistan. United Bank of
Pakistan is one of the leading and first government recognized bank in Pakistan. Aimed to be
the pre-eminent financial institution in Pakistan and achieve market recognition both in the
quality and delivery of service as well as the range of product offering. The reason of its
development was that the UBL in addition to being a commercial bank in the public sector at
a time when all other commercial banks were in the private sector also came to acquire
certain characteristics which to this day set it part from other commercial banks of the
country.
The establishment of UBL thus signaled the achievement of another milestone in the
development of the banking industry in Pakistan. So, by 30th June 1948, the number of office
schedule banks in Pakistan declined from 487 to 195. In June 1959, Mr. Agha Hassan Abedi
decided to open a bank different from other to provide modern banking facilities to trade and
industry and to promote the habit of saving among common people. Necessary formalities
have been compiled for registration certificate to perform business to STATE BANK OF
PAKISTAN for permission. Mr.Agha Hassan Abedi in 1962, after nationalized MrA.K
Yousaf was appointed as managing director for a short while and later on designated as
president; he was replaced by Mr.Aia-ud-din in on 1st January 1997. Progress of this
estimated institute could be measured in terms of deposits and number of branches opened.
UBL have been ranked as number three banks in Pakistan in terms of deposits and branches.
In 1963 first overseas branch was opened in London, in 1966 two branches in Bradford and
Birmingham were also opened in 1967 Dubai and Abu Dhabi branches were opened. More
important thing is that UBL is pioneer in computerization of banking. The Bank was
privatized in 2002, through the sale of 51 percent stake to a consortium of the Abu Dhabi
Group led by His Highness Shaikh Nahayan Mabarak al Nahayan and the Bestway Group led
by Sir Mohammed Anwr Pervez,. The issue is unsecured and subordinated to payment of
principal and profit to all other indebtedness of the Bank including deposits. United Bank
Limited is one of the largest commercial bank in the country. With almost 47 years of good
standing to its valued clients, it has stood the test of time.
Its larger branches are fully computerized. Saving and current deposit art computerized in
almost all branches. Now UBL is on the road of growth with reference to market share and
network. They have now 1385 domestic Branches and 19 Overseas Branches in different
countries. The total revenue of year 2016 is 80.65 billion (US$760 million), total net
income is 27.73 billion (US$260 million) and total assets is 1.62 trillion
(US$15 billion)
Subsidiaries:
Joint Ventures:
Commercial bank of Oman Limited (Mascot) established in 1982.
United Saudi Commercial Bank Limited (Saudi Arabia) established in 1982.
Competitors
HBL
Allied bank limited
MCB
BOP
NBP
Strategic Orientation
VISION
To be a world class bank dedicated to excellence, and to surpass the highest expectation of
our customer and all other stakeholders
MISSION STATEMENT
We shall dominate Pakistans financial markets and be the leading bank of Pakistan in term
of quality of customer services, assets, profits and reserves. We shall consistently try to be
among banks in the Pakistan. We shall be a modern universal bank. Our employees will be
efficient, motivated and have corporate pride
VISION
To be a world class bank dedicated to excellence, and to surpass the highest expectation of
our customer and all other stakeholders.
Core Values
Customer Focus.
Respect.
Entrepreneurship.
Curiosity.
Excellence.
Teamwork.
Integrity & Trust.
ORGANIZATIONAL STRUCTURE
Organizational structure of a firm provides boundaries for authority of persons and clarifies
individual responsibility and authority. It shows who is responsible to whom, and who has the
authority to give orders to someone. An organization having dual authority or vague structure
would not have clear direction and will face hurdles in getting its goals and objectives.
Therefore, it is very important for any organization to have a well-established structure of
responsibility and authority. An organization structure should be so designated to clarify the
environment so that everyone knows his duty and who is responsible for what. It results to
remove obstacle to performance caused by confusion and uncertainty of tasks and to furnish a
decision making communication network reflecting and supporting enterprise objectives.
Board of Directors
1. Head Office
1. Head Office
Head office of UBL is in Karachi. It exercises overall control over the bank. The head
office (HQ) has various functions.
Number of employees
Accounts Department
Remittance Department
Credit department
Cash Department
HR Department
Marketing / Sales Department
Finance Department
Department of Account
The department of account opening fundamental purpose is to open the new account for
customer and increase the deposit of bank. Every branch of the bank has a target to achieve a
high level of
The department of account opening has to perform formalities to open the new account which
are following
Formal Application:
Firstly customer has to request the officer of bank to open the account in bank
Business account
Joint account
Individual account
Documents which are require for open a new account in the bank:
Copy of CNIC.
Copy of utility bill
KYC (know your customer).
Manager transfer the new account on the computer system because all branches are online so
after putting the account on computer system the system generated the account number and
customer Id.
After transferring the account on the system the manager sent the request for the cheque book
to the head office and then the cheque book is received in the branch after five days of
account opening.
At the time of account opening or later a customer asks about the ATM facility then he has to
benefit the facility of ATM card then manager sent the request for ATM card and card is
received to customer in 20 days.
After ATM card issuance the bank manager explained terms to the customer which is
following:
All working of account opening department is on some statements which are known selective
journal reports and deals with following terms:
Account type
Account number
Fax number
Phone number
Type of Cheque book
Source of request
Date when manager send the request for cheque book.
Cash Department
Cash department is very sensitive and risky department of any bank and it is very important
to bank manage your cash department for the good of your bank so for this reason HBL has
very good professional staff with the new technology in its all branches.
Cash withdraw.
Cash deposit.
Through cheque
Through cash
First of all cheque from the customer of the branch and arrange collection of
them.
To arrange the payment of cheque drawn on the branch any given for the
collection to any other branch of HBL.
To collect amount of cheques in drawn members.
Credit Department
The credit department use to provide the money against marketable securities, tangible assert
and promissory note. The bankers prefer those securities which are not too risky.
Mortgage:
This is the process of lending the money in against of land or any other assets and the time
duration for which the customer lending the money from bank he cannot sell his property.
Securities:
When applicant cant provide the tangible security then the bankers relay on the personal
guarantee to protect own self against any loss on advances.
Pledge:
In the pledge the bank has exclusive procession of property until the money is repaid to the
bank and after the date of pledge the bank has right to sale property after due date.
Agriculture loan:
Remittance Department
Remittance means a sum of money sent in payment for something. This department deals
with either the transfer of money from one bank to other bank or from one branch to another
branch for their customers. NBP offers the following forms of remittances.
Demand Draft
Telegraphic Transfer
Pay Order
Demand Draft
Demand draft is a popular mode of transfer. The customer fills the application form.
Application form includes the beneficiary name, account number and a senders name. The
customer deposits the amount of DD in the branch. After the payment the DD is prepared and
given to the customer. NBP officials note the transaction in issuance register on the page of
that branch of NBP on which DD is drawn and will prepare the advice to send to that branch.
The account of the customer is credited when the DD advice from originating branch comes
to the responding branch and the account is debited when DD comes for clearance. DD are of
two types.
Pay Order
Pay order is made for local transfer of money. Pay order is the most convenient, simple and
secure way of transfer of money. UBL takes fixed commission of Rs. 25 per pay order from
the account holder and Rs. 100 from a non-account holder.
Human Resource plays a vital role in the success of every service organization. They interact
between man and machine. Their attitude can win or lose the customer. The positive attitude
could only be created in a conductive environment, which can make the staff dedicated
towards the organizational objectives
Major Function
Human Resource Planning is conducted by the HR department. They assess the existing
number and nature of staff and then place / post them at needy branches according to the
requirement of that branch. For example, if the load on cash counter is increasing, one new
cashier will be posted at the Branch.
Recruitment of Staff
However, in near past limited authority has been given to regional offices to hire the services
of outsourced staff i.e. staff provided by the employment companies. This type of recruitment
is being made in following areas:
Security Guards
Sale & Marketing staff for retail products.
Transfer of Employee
The regional office controls fifty five (55) branches. All transfer and posting of employees
among these branches is made by HR department
keeping in view the staff requirement at different branches.
Job Rotation
Function of Job rotation is also performed by regional office. Normally when an employee
completes three years at a particular seat, he rotates to another seat. This rotation is very
important for internal control, to prevent fraud and forgery and to enhance the employees
skills for different duties.
H.R Department analyzes the day to day requirement of SBP regulation for different Banking
activities, and plans for training and development of staff .This training may also be based
upon introduction of new Banking produces and competition with rival Banks.
Promotion of employees
NBP HR department performs the function of promotion. Normally NBP promotes its
employees after every three yours on the basis of their past
performance, availability of vacancies in each grade/cadre and quota approved by the
Ministry of Finance, for each grade/cadre.
The cash management department is also known as the Operations Department in the bank
and Finance Department also known as Consumer Finance Department. Operations
Department handles all the operations related to Cash, Clearance and inward/outward
remittance..
Consumer Finance Department handles all the funds collection in form of accounts from the
customers and financing procedures of the bank.
Operations Manager
Head Tellers
Universal Tellers
Financial Operations
Both the consumer finance and Operations departments are interlinked with each other.
Following is the Description of the working of both departments according to my observation
during Internship at Dubai Islamic Bank Pakistan Limited.
Operations Department
Operations Department has two different sub sections, Cash & Accounts Management and
Inward/Outward Remittance Clearing. In cash and accounts management system the
universal teller is in charge of the cash handling and accounts management of the bank
transactions. Every transaction that involves cash is taken by Universal Teller. When a person
wants to deposit the cash or withdraw the cash using a cheque, the universal teller has to
verify the following things regarding the payment of the cheque. First, the details given on
the cheque like Name of the Customer is verified, if the cheque is crossed by the payer than
the cheque will be deposited in the account of the payee, the name of the payee must match
with its CNIC and account to make the transaction. The Signature is verified from the system
to make sure the cheque is signed by the payer itself from which the payment will be made.
When there is a cheque of other banks which needs to be deposited in the account of the
Payee, this cheque is sent for the clearing. This process is outward clearing. When the other
bank whose cheque is received clears the payment, that payment is added to the customers
accounts with some charges deduction. When some other bank requests for the clearance in
reference to the cheque of our bank the Head teller verifies the payment and made the
payment accordingly. This process is inward clearing.
Both the head tellers and universal tellers are overseen by the operations manager. At the end
of the day all the transactions in form of cash and cheques are supervised by the Manager
Operations. These transactions cannot go in the master data without the approval from the
operations manager. The operations manager verify all the transactions with referred to their
written document (in case of withdraw the cheques are verified and in case of deposit or
online trisection the deposit slips are verified).
Under Consumer finance department, there are two different sub departments that have their
own functions. The Accounts opening department is headed by the Senior Financial
Consultant and The Financing Department is headed by Finance Officer.
Flow of Documents
In the start the customer must be an account holder at Dubai Islamic Bank Pakistan Limited.
If the customer does not hold a bank account then a new account is opened in process of the
financing. For the old and new account holders, they have to provide a bank statement of the
transactions of business or for personal usage. This statement provides the proof that the
customer can handle the amount of the profit and return the principal of the bank invested as
well.
The total procedure and the duration of the partnership is made the finance officer at the bank
and given to the customer. In that procedure all the payments that must be done before the
acquiring the asset and the process of the after acquiring the asset is mentioned. The monthly
amount that the customer must pay and the principal to reduce the partnership level are also
mentioned in that procedure.
If the customer agrees the bank further makes the documents in which the undertaking of the
bank and customer and the surety of the customer to pay the amount regularly to the bank.
Both the customers and the representatives at the bank sign that agreement and these
documents are forwarded to the head office for approval.
The head office approves the documents and returns them to the bank and gives them the
permission to buy the asset from the market and give it to the customer. The customer than
take the asset and the partnership starts. Now the customer each month comes to the bank and
pays the due amount to the bank.
If the customer delays or cannot reach the bank to pay the instalment the recovery officer
contacts the customer and reaches him to collect the due amount of the current period.
Types of accounts